Energy & Mining International - Fall 2015 - 70


E
M
I

KARNALYTE RESOURCES INC.

FALL 2015
CANADA

+
Limited Impacts
_____

Karnalyte Resources has the ability to build capacity as demand requires..

After raising $5 million, "I had two
historical drill cores that were on the
property," he recalls, adding that he
was able to raise $15 million more.
"In 2010, we were able to get on the
Toronto Stock Exchange and raised an
additional $65 million."
Since then, Karnalyte has completed all of its milestones and attracted
a strategic partner in Gujarat State
Fertilizers & Chemicals (GSFC) Ltd.,
an India-based provider of fertilizer, of which potash is an ingredient.
"They joined us with an investment of
$45 million towards building our first
plant," Phinney says.

A RECOVERING MARKET
Karnalyte experienced a setback
in 2013 when global potash prices
dropped. A major factor was Russia-based potash fertilizer company
Uralkali leaving one of the world's
biggest potash cartels. "They killed
70 emi-magazine.com

the potash market for a year," Phinney recalls.
Vice President of Corporate Development Julius Brinkman agrees. "The
strategic partner was coming on and
everything was looking great," he recalls, noting that prices also dropped
because of overcapacity, higher oil
prices and less fertilizer being used.
However, "Things changed when the
oil prices started dropping," Brinkman
says. "Demand is growing especially on
the granular potash side, which is our
product line. It's heating up, especially
in North America."
Karnalyte is getting ready to build
its first facility, which will initially
produce more than 625,000 metric
tonnes (689,000 tons) of potash a year,
eventually exceeding 2 million tons.
"Our strategic partner wants to move
this forward as soon as possible,"
Phinney adds.
"We're in constant negotiations with

Karnalyte Resources Inc. has kept
the environment in mind during the
Wynyard Carnallite Project. "The surface
environmental impact from plant and
mining operations is expected to be
small," the company asserts.
According to Karnalyte, the solution
mining process plan will not produce
surface salt tails piles or tailing ponds.
"Karnalyte Resources eliminates the use
of [tails management areas] by pumping
the waste underground to spent mining
caverns and/or deep underground geological disposal," he explains.
"When the mine is depleted, the
field infrastructure is removed and the
land can be used again for agricultural
purposes," Karnalyte says. "In February
2013, the Saskatchewan Ministry of Environment approved the Environmental
Impact Statement for Karnalyte's Wynyard Carnallite Project, as it is satisfied
that any adverse environmental effects
can be eliminated or mitigated."

them in terms of how are they going to
fund this and what the split's going to
be," he says. "They want the offtake and
they want it yesterday."
More may join the project, Brinkman
adds. "As we grow our capacity, there's
potential for another strategic partner
to come in," he says. "We're always
open to possibilities."
Karnalyte is taking a route less traveled on the Wynyard Carnallite project
by using the solution mining approach,
Phinney says. "In the potash industry,
they usually go in with the hard rock
mining," he explains.
But solution mining requires lower
capital expenditures, Brinkman says.
The process involves pumping water
into the mineral deposit through a
drilled well.
When the mineral dissolves in water,
a brine solution is formed, which is


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Table of Contents for the Digital Edition of Energy & Mining International - Fall 2015

Contents
Energy & Mining International - Fall 2015 - Cover1
Energy & Mining International - Fall 2015 - Cover2
Energy & Mining International - Fall 2015 - 1
Energy & Mining International - Fall 2015 - 2
Energy & Mining International - Fall 2015 - Contents
Energy & Mining International - Fall 2015 - 4
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Energy & Mining International - Fall 2015 - Cover3
Energy & Mining International - Fall 2015 - Cover4
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http://www.nxtbook.com/nxtbooks/businessmedia/ep_2010summer
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